The reverse mortgage program has weathered persistent change over the years as the Department of Housing and Urban Development has tweaked loan guidelines (again and again and again), all in the name of sustainability.
In the last several years, the product has shed its label as a loan of last resort and has become considered by numerous experts to be a sound tool in retirement income planning.
All of these changes have altered the type of person who uses a reverse mortgage, as well as the amount of proceeds they can get.
Recent data from the National Reverse Mortgage Lenders Association paints a picture of the average reverse mortgage borrower.
NRMLA President Peter Bell said that anecdotal evidence gathered by the association delves even deeper, revealing the reasons why people choose this loan.
“We are seeing a greater diversity in the desire for reverse mortgages and the usage of proceeds,” Bell said. “In addition to lowering monthly expenses by eliminating forward mortgage payments – the most traditional use historically – we see more older adult borrowers and their families seeking support for health emergencies, in-home support services and especially for caregiving.”
Check out this exclusive infographic for details on who's taking out a reverse mortgage these days.